The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has called for transparency and efficiency in the disbursement of the World Bank’s newly approved $500 million under the Community Action for Resilience and Economic Stimulus Programme.
Dr. Almona urged the government to ensure the funds reach the intended beneficiaries, emphasizing the need for a strong monitoring and evaluation framework to track its impact and prevent mismanagement. She said the development comes at a critical time when Nigeria faces serious economic challenges, including rising inflation, declining purchasing power, and a heavy debt burden.
She noted that while the intervention is targeted at supporting poor and vulnerable households and businesses, the broader implications for the economy and the private sector raise concerns. According to her, the direct impact of the loan on small businesses and vulnerable populations, through grants and livelihood support, could provide short-term relief by enhancing food security and strengthening local communities against economic hardship.
However, she cautioned that the long-term macroeconomic effects of the loan must be carefully considered. Expressing concern over Nigeria’s increasing debt profile, Dr. Almona pointed out that the slow pace of disbursement and implementation of previously approved loans raises questions about the effectiveness of new borrowings. She noted that the World Bank’s share of Nigeria’s external debt now stands at $17.32 billion, making debt sustainability and repayment a growing concern.
She warned that if not managed properly, additional borrowing could worsen fiscal vulnerabilities, weaken investor confidence, and reduce the government’s ability to implement long-term economic reforms. While acknowledging that targeted stimulus programs can provide temporary relief, she stressed that deeper structural issues such as inadequate infrastructure, multiple taxation, and foreign exchange volatility remain unaddressed.
Dr. Almona emphasized that businesses require a stable environment to thrive. While social welfare programs are necessary, they must be complemented by policies that enhance productivity, attract investment, and create jobs. She also raised concerns about the government’s ability to utilize the newly approved loan effectively, noting that only 16 percent of previously approved World Bank loans under the current administration have been disbursed.
To maximize the loan’s benefits and mitigate risks, she urged the government to adopt a prudent debt management strategy by prioritizing concessional financing and ensuring that borrowed funds are allocated to projects with clear economic returns. She also called for improved domestic revenue generation through tax reforms and the expansion of the country’s productive base to reduce reliance on external borrowing.
She stressed that beyond short-term financial relief, the government must implement structural reforms that create a favorable business environment. She called for policies that focus on improving infrastructure, maintaining policy consistency, and addressing foreign exchange challenges to support private sector growth and attract long-term investments.
